Friday, 27 April 2012

Maybank IB Research maintains Buy on MAHB, target price RM7.10

KUALA LUMPUR (April 27): Maybank Investment Bank Bhd Research has maintained its Buy rating on Malaysia Airports Holdings Bhd with a target price of RM7.10 and said the company’s 1Q12 core net profit of MYR116.6m (+3.4% YoY, +26.7% QoQ), which was within its expectations, underpinned MAHB's resilience in the face of adversity.

“Despite Malaysian Airlines cutting capacity by over 10% in the quarter, MAHB managed to deliver 6.5% traffic growth YoY which is within its guidance for 6%-7% traffic growth in 2012,” the research house said in a note Friday.

‘We look forward to a promising 2012 as air travel momentum remains healthy in the region and MAHB's high utilization rates will boost profit and profit margin expansion. Maintain Buy, with an unchanged target price of RM7.10/share DCF-based,” it said.